Counterbond

/ˈkaʊntərbɑnd/ noun

Definition

A bond or legal obligation issued as security against another bond, often used in financial or legal contexts.

Etymology

From counter- (opposite, reciprocal) + bond (a binding agreement or legal document). Developed in commercial and legal English to describe reciprocal security arrangements.

Kelly Says

Counterbonds created an elegant financial solution in medieval trade—if merchants had disputes about payment, they could issue counterbonds to ensure both parties had equal leverage.

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